CRE Daily

Variety Wholesalers is stepping in to acquire 200–400 Big Lots stores, keeping the brand alive and preserving jobs for employees. Full story here 👇 https://lnkd.in/eqDsd2kp

The rapid growth of data centers in Atlanta is raising big concerns. According to Green Street, total data center inventory grew by an average of 43% annually in 2023 and 2024. ↳ 𝗕𝘂𝘁 𝘄𝗶𝘁𝗵 𝗵𝗼𝘂𝘀𝗶𝗻𝗴 𝘀𝗵𝗼𝗿𝘁𝗮𝗴𝗲𝘀 𝗮𝗻𝗱 𝘀𝘁𝗿𝗮𝗶𝗻𝗲𝗱 𝘂𝗿𝗯𝗮𝗻 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀, 𝗰𝗶𝘁𝘆 𝗹𝗲𝗮𝗱𝗲𝗿𝘀 𝗮𝗿𝗲 𝘀𝘁𝗲𝗽𝗽𝗶𝗻𝗴 𝗶𝗻: 1️⃣ Data centers banned near transit hubs to prioritize housing and public spaces. 2️⃣ Advocates call for balancing tech expansion with livability. 3️⃣ AI and cloud computing demand surges, straining resources. With AI demands rising, Atlanta’s at a crossroads. Will tech growth outpace livability? 👉 Full details in the comments.

U.S. commercial real estate prices are showing signs of stability. CoStar’s value-weighted composite index gained 1.3% in November, marking its fourth consecutive increase—the longest streak of growth since mid-2022. While prices are still 2.5% below last year’s levels, the decline has eased from a steep 12.4% drop recorded between mid-2023 and mid-2024. Read today's newsletter (link in comments) 👇

After nearly 40 years, Party City is 𝗰𝗹𝗼𝘀𝗶𝗻𝗴 𝗶𝘁𝘀 𝗱𝗼𝗼𝗿𝘀 𝗳𝗼𝗿 𝗴𝗼𝗼𝗱. The iconic party supply retailer is shutting down all 700+ stores by February 2025. 𝗪𝗵𝘆 𝗶𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝗲𝗱: 1️⃣ Years of financial struggles, including a helium shortage. 2️⃣ Post-2023 bankruptcy efforts failed to stabilize. 3️⃣ Rising costs and shifting consumer trends challenged its ability to adapt. Party City's closure 𝘀𝗽𝗮𝗿𝗸𝘀 𝗱𝗼𝘂𝗯𝘁𝘀 about the future of specialty retail amid economic pressures and shifting consumer habits. 🔗 Full story in the comments.

9 of the top 10 retail markets in 2024 are in the Sun Belt, showcasing the region's growing appeal for consumers and investors, according to a CoStar report. Here’s what’s driving the success: 📍𝗣𝗵𝗼𝗲𝗻𝗶𝘅 𝘀𝗵𝗶𝗻𝗲𝘀 with 7% rent growth, low vacancies, and rising sales volume. 📍𝗢𝗿𝗹𝗮𝗻𝗱𝗼 & 𝗩𝗲𝗴𝗮𝘀 offer strong rental growth and solid ROI for investors. 📍𝗖𝗼𝗹𝘂𝗺𝗯𝘂𝘀 (only non-Sun Belt city) is thriving on tech and university growth. Retail’s future is heating up in the South. Will it continue to dominate in the coming years? 🔗 Full story in the comments.

Americans are packing up and heading south. According to moving van data, cities in North Carolina, Tennessee, and Texas are seeing a surge in new residents. 𝗧𝗵𝗲 𝗿𝗲𝗮𝘀𝗼𝗻? Affordable housing, better work-life balance, and hybrid work opportunities are leading the charge. 𝗛𝗲𝗿𝗲’𝘀 𝘄𝗵𝗮𝘁 𝘁𝗵𝗲 𝗱𝗮𝘁𝗮 𝗿𝗲𝘃𝗲𝗮𝗹𝘀: 🏡 Charlotte, Raleigh, Nashville, and Dallas thrive with low costs, high quality of life. 💼 Remote workers leave pricey metros for affordable mid-sized cities. 📉 California and Illinois lose residents to low-tax states.

In Q3, U.S. commercial and multifamily mortgage debt grew by $𝟰𝟳.𝟳𝗕, reaching $𝟰.𝟳𝟱𝗧, according to the Mortgage Bankers Association. Here’s what’s driving the growth: 📈 𝗠𝘂𝗹𝘁𝗶𝗳𝗮𝗺𝗶𝗹𝘆 𝗦𝘂𝗿𝗴𝗲 Multifamily debt led the pack with a $29.8B increase, fueled by demand and stable financing. 💰 𝗟𝗶𝗳𝗲 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗕𝗼𝗼𝘀𝘁 Life insurers added $21.2B, showing continued confidence in long-term real estate investments. 🏦 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 Agencies and GSEs increased holdings by $12.3B, ensuring liquidity for the multifamily sector. However, 𝗽𝗲𝗻𝘀𝗶𝗼𝗻 𝗳𝘂𝗻𝗱𝘀 𝗽𝘂𝗹𝗹𝗲𝗱 𝗯𝗮𝗰𝗸, reducing exposure by 8.8%, signaling cautious sentiment amid shifting economic conditions. 🔗 Full story in the comments.

According to a report by Crexi and PwC, 𝟭𝟬 𝗨𝗦 𝗰𝗶𝘁𝗶𝗲𝘀 stand out as prime spots for multifamily investment, each offering unique advantages and strong growth potential. Here’s a glimpse of the top contenders: 📌 𝗖𝗵𝗶𝗰𝗮𝗴𝗼, 𝗜𝗟: Diverse economy, solid rental demand. 📌 𝗦𝗮𝗻 𝗗𝗶𝗲𝗴𝗼, 𝗖𝗔: High demand and limited apartment supply. 📌 𝗡𝗮𝘀𝗵𝘃𝗶𝗹𝗹𝗲, 𝗧𝗡: Growth, cultural appeal, and affordable rents. Curious about the full list? 👇 https://lnkd.in/efuN5qqD

A strong US economy with 𝟮.𝟰% 𝗚𝗗𝗣 𝗴𝗿𝗼𝘄𝘁𝗵 projected for 2025 is setting the stage for a real estate rebound. Here's what’s shaping the market 👇 ↳ Construction starts are down 70% since 2022, driving rents and prices higher. ↳ High mortgage rates push more families toward rentals. ↳ Data centers and logistics spaces thrive on increased demand. 👉 But challenges remain… ↳ 2T in office debt matures by 2026, with vacancies creating headwinds. ↳ Office-to-residential conversions show promise but remain limited. 🔗 Full story in the comments.

𝗖𝗥𝗘 𝗹𝗼𝗮𝗻 𝗼𝗿𝗶𝗴𝗶𝗻𝗮𝘁𝗶𝗼𝗻𝘀 are improving, with multifamily leading the way. But 𝗼𝗳𝗳𝗶𝗰𝗲 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝗶𝗲𝘀 are still holding things back. Here’s the breakdown: 1️⃣ 𝗠𝘂𝗹𝘁𝗶𝗳𝗮𝗺𝗶𝗹𝘆 𝗶𝘀 𝗯𝗼𝗼𝗺𝗶𝗻𝗴 Originations surged 76% YoY in Q3, reflecting pent-up demand and better financing conditions. 2️⃣ 𝗢𝗳𝗳𝗶𝗰𝗲 𝗽𝗮𝗶𝗻 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲𝘀 Delinquency rates hover between 7-8%, far exceeding multifamily (~1%) and retail (~2%). 3️⃣𝗢𝘃𝗲𝗿𝗮𝗹𝗹 𝗼𝗿𝗶𝗴𝗶𝗻𝗮𝘁𝗶𝗼𝗻𝘀 𝗮𝗿𝗲 𝘀𝘁𝗶𝗹𝗹 𝗯𝗲𝗵𝗶𝗻𝗱 Volumes remain 53% below pre-pandemic levels, with office originations down a staggering 77% from 2019 averages.